Greenhouse gases embodied in the international trade and final consumption of Finland: An input–output analysis

Abstract

The estimation of greenhouse gas (GHG) emissions associated with international trade and final consumption gives a more complete and balanced picture of the responsibilities of various countries for the emissions that cause the climate change. The aim of this study was to look at the impact of the coverage of the GHGs and their sources and assumptions regarding the emissions of imports on the results of GHG emissions associated with international trade and final consumption of Finland. In addition to a single year study, a trend covering years 1990–2003 was produced for Finland to study the development of the GHG emissions associated with domestic consumption and the reasons behind the development. According to our results Finland was in 1999 a net exporter of CO 2 from fossil fuel combustion, CO 2 from all sources and GHGs of 4(4.2), 5 or 7 Gkg, respectively. The impact of different assumptions concerning the emissions embodied in imports in the case of Finland was tested by using the domestic emission intensities and the ratios of embodied emissions in imports in relation to domestic products by utilizing the data from the study by (OECD, 2003b. Carbon Dioxide Emissions Embodied in International Trade of Goods, STI Working Paper 2003/15, OECD, Paris). In the case of Finland, the differences of results calculated with these two methods remained rather small. The total emissions embodied in the imports changed from 33.8 to 34.4 Gkg and consequently the net export of CO 2 from fossil fuel combustion changed from 4.2 to 3.6 Gkg. The results for 1990–2003 show that the GHG emissions embodied in the exports have exceeded the GHG emissions embodied in the imports from early 1990s. The reason for the increasingly positive GHG trade balance in the case of Finland has been the change in the magnitude of trade rather than the changes in its structure. The results show also that the impact of international transport on the emission intensity of imports is significant and merits further research.